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Samsung focuses Pyeongtaek foundry capacity on high-value HBM production
Friday, March 20, 2026 at 02:40 AM
Samsung Electronics is reportedly pivoting its Pyeongtaek production strategy to prioritize High Bandwidth Memory (HBM) manufacturing. The decision reflects the high demand and profit margins associated with AI memory chips, despite the lengthy 4-5 month manufacturing cycle for silicon wafers.
Context
Samsung Electronics has reportedly shifted its strategic focus at the Pyeongtaek manufacturing complex, allocating over 50% of its foundry capacity to internal high-bandwidth memory (HBM4) production. This internal pivot utilizes the company's 4nm process for HBM4 base dies to meet the rigorous power efficiency demands of major AI clients like NVIDIA and AMD. This move has pushed utilization at the Pyeongtaek facility to over 90%, effectively prioritizing high-margin AI memory over external foundry customers.
This transition comes as Samsung aims to triple its HBM output by the end of 2026 to reclaim market leadership from SK Hynix. On March 18, 2026, Samsung signed a major MOU with AMD to supply HBM4 for the Instinct MI455X GPUs, a deal that underpins this capacity reallocation. By leveraging its unique position as both a memory manufacturer and a foundry, Samsung is accelerating its roadmap toward HBM5, which is expected to feature a 2nm base die to support next-generation AI infrastructure.
Sources (9)
Samsung and AMD Expand Strategic Collaboration on Next-Generation AI Memory Solutions – Samsung Global NewsroomHow Samsung is Driving AI Adoption, Supply Chain Resilience and Smart Operations in Manufacturing | Samsung Business New ZealandSamsung brings forward P5 cleanroom timeline under 'Shell First' strategySamsung to spend record $73 billion on facilities, R&D to ...
SK Hynix set to overtake Samsung as DRAM leader amid AI-driven memory boom | S&P Global
Samsung Electronics to Triple HBM Output, with Over Half Allocated to HBM4 - The Asia Business Daily[News] Samsung Reportedly Allocates 50%+ of Pyeongtaek Foundry Capacity to HBM4 Base Die; Said to Win OpenAI DealSamsung Develops HBM5 with 2nm Process Technology - Businesskorea
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